Thinking of Buy to Let

dannyboycey

dunstonh wrote: »

Poor sod got into it and at 26 is losing money fast and could be upto £70k down at the moment.

Surely though, the 220k he paid for a new build flat (in 2005!) would seem excessive by anyones standards. His business model could only be successful if prices continued to rocket. It was a hugely optimistic gamble. The profit was never going to come from rental income.

dunstonh

dannyboycey wrote: »

Surely though, the 220k he paid for a new build flat (in 2005!) would seem excessive by anyones standards. His business model could only be successful if prices continued to rocket. It was a hugely optimistic gamble. The profit was never going to come from rental income.

Sure. It was an awful investment and that would have been obvious in 2005 to anyone with some property investment experience or an inexperienced individual that did even a little research. It just highlights the risk of being a property lemming.

New mortgaged buy to let landlords really do seem to underestimate the risk of the transaction that they are or have entered into.

jamesj_2

Buy to Let is a LONG term investment. There will always be highs and lows. This is called the Property Cycle. As a Buy To Let investor you should be looking at the LONG TERM and in my opinion trying to fix rates long term and buying a property where the income i.e rent is more than ALL the outgoings. Guaranteed rents help too. Also you need to buy a property that will appreciate over the long term. If you check the land registry figures over the past 5-10 years you will be able to see the rate of capital growth for that type of property. Also buy in an good area that isnt run down and has no plans for the future.

This is one way. This should get you a return over 10 years. BUT your capital is tied up with the investment. Also remember CGT. In my opinion it is better to buy property below market value if possible and use closed bridging and remortgage. If you buy a property at least 18% below market value then you can do this with little or none of your own money.

By doing this you then have superior cash on cash return with no money invested or required for deposits.

I have got this information from a free mini course on the subject of buying with no money down at www.belowmarketvaluepropertyinvestments.com

It certainly makes you think outside the box.

carolt

:spam::spam::spam::spam::spam::spam::spam::spam:

Wondered why a 2 month old-thread got resurrected?

They want to sell you something!!!!!

inmypocketnottheirs

I think that the BTL market in North Wales is precarious. I would be concerned about the quality of tenants at the bottom end of the market. What availability is there of rental properties at the figures that are being quoted? Exactly where in North Wales. Rhyll/Colywn Bay appear full of problems. Bangor would be student lets I guess.

mitzi01

I may be saying the obvious but if your looking at flats don't forget that there will probably be an annual Property Management Charge to pay also which can be a significant amount in addition to the mortgage. Its worth checking what this is on a flat before progressing.

Zammo

mikeopvc wrote: »

Hi everyone,
my wife and I are thinking of entering the world of buy to let but just wondered if we could get some sound advice from these forums first.
We obviously are aware that there are risks involved but also some advantages. Were not afraid of a bit of hard work and thought we could get a interest only mortgage on a local property and rent it out for a little more than the mortgage, is this a good time to star on this type of project or should we wait untill the market gets a bit more stable?
Were not looking for a step by step guide here but just a few tips (good or bad) from people who may have done the same. I suppose we are hoping that if all goes well we might eventually aquire a couple more properties in the future to secure a decent retirement as we don't really go for pensions.
Any advice greatly recieved,

Thanks in advance

MIKE

This whole thread is a wind up right?